Exchange Rate Outlook: AUD/NZD at Five-Year Low

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Pound Sterling

The Pound fluctuated against the US Dollar early into European trading as UK house prices fell for the first time in 11 months. Sterling put in a patchy performance against several of its other currency rivals prior to tomorrow’s Bank of England rate decision.

GBP/EUR is trading in the region of 1.2064 and GBP/USD is trading in the region of 1.6416

US Dollar

As the US posted better-than-anticipated trade data the ‘Greenback’ rallied against the majority of its currency rivals yesterday. The US Dollar was stronger against the Pound and Euro and was approaching a 5-year high against the Yen.

USD/GBP is trading in the region of 0.6091 and USD/EUR is trading in the region of 0.7349

Euro

After putting in a fairly mixed performance yesterday following the release of upbeat German employment and disappointing Eurozone inflation data, the Euro fluctuated in response to the news that Germany’s trade surplus increased by less-than-forecast. German exports rose a seasonally adjusted 0.3 per cent in November rather than the 0.8 per cent expected. Eurozone retail sales/unemployment data will trigger more Euro movement as trading continues.

EUR/GBP is trading in the region of 0.8288 and EUR/USD is trading in the region of 1.3607

Australian Dollar

The expectation that the Federal Reserve will continue to taper stimulus in the short term left the ‘Aussie’ struggling against its rivals at the close of local trading. The Australian Dollar was also feeling the strain as a domestic gauge of construction activity fell in December, edging from 55.2 to 50.8 – close to the 50 mark separating growth from contraction.

AUD/GBP is trading in the region of 0.5429, AUD/EUR is trading in the region of 0.6550 and AUD/USD is trading in the region of 0.8915

New Zealand Dollar

Ahead of the release of minutes from the Federal Reserve’s latest policy meeting the New Zealand Dollar was little changed against the ‘Greenback’ but was trading in the region of a five-year high against its Australian counterpart. Later today New Zealand’s building permits figures will be released. While the data will be of interest in an otherwise quiet news week for the South Pacific nation the figures are unlikely to trigger much movement.

NZD/GBP is trading in the region of 0.5041, NZD/EUR is trading in the region of 0.6076 and NZD/USD is trading in the region of 0.8271

Canadian Dollar

The ‘Loonie’ plummeted to a three-year low against the US Dollar and tumbled against the majority of its peers after Canada posted its 23rd consecutive trade deficit. Canada’s Ivey Purchasing Managers Index also fell below the 50 mark separating growth from contraction. Today’s US employment figures could be responsible for additional ‘Loonie’ movement during North American trading.

CAD/GBP is trading in the region of 0.5629, CAD/EUR is trading in the region of 0.6793 and CAD/USD is trading in the region of 0.9241

These exchange rates were correct as of 9:15 am

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.